How India Built a Nearly $750 Billion Shield Against Economic Storms Amid US Iran Tensions The Reserve Bank of India (RBI) has achieved a remarkable feat in managing India's foreign exchange reserves, setting a new record high of over $740 billion.
This achievement is particularly notable given the ongoing US Iran war and global economic uncertainty. To understand the RBI's success, it's essential to examine its special dollar swap scheme launched in June.
The initiative allowed Indian banks to incentivize foreign currency deposits from overseas Indians by absorbing currency hedging costs on FCNR (Foreign Currency Non Resident) deposits.